In Memory of Founder of ratten NO. 2 1962 THE 33RD YEAR OF ISSUE

he recent death of Assar Gab- the future to be less significant than His co-operation with his colleagues rielsson has meant that the fact that it was he who introduced was always enthusiastic and full of Thas lost a great industrial leader the MTM system into Swedish industry. interest. In spite of the great authority with outstanding initiative. This is no He was convinced that the introduction he had within the company, problems place to describe the life and work of of this system would rationalize and were never settled on the basis of Mr. Gabrielsson since this has already simplify production, not only of motor prestige but his colleagues were always been done on various occasions. My vehicles but of any product and that given the chance to express their only wish is to make an attempt to this contribution was greater for Swe- opinions. As a person he sub-conscious- express the great loss suffered by the den and the competitive nature of its ly kept himself at some distance from Volvo Group of Companies, the crown- industry. The future will show whether his colleagues and comrades and there ing achievement of his life work, and he was right. In spite of his failing were very few within the company all his colleagues in these companies. health, Assar Gabrielsson closely fol- who came close to him in this respect. Under the leadership of Assar Gab- lowed all that happened in the com- I am convinced that this depended on rielsson, the Volvo Group of Com- pany until only a few days ago. an innate sense of shyness whereby he panies, now one of the largest industrial This year Volvo celebrates its 35th did not like to show his sentiments to undertakings in Sweden, developed anniversary and Assar Gabrielsson re- strangers and also possibly a desire to from an idea Mr. Gabrielsson got when signed his post as Chairman of the draw a dividing line between his work he was at SKF. In spite of difficulties Board at the General Meeting in May. and his private life. encountered during the first years the In spite of his poor health he took Under the leadership of Assar Gab- company was in existence and in spite an active part in the company and was rielsson and a certain of enormous problems, particularly responsible for all the important deci- atmosphere was created and a will to during the years of World War II, Assar sions made during the past year con- co-operate within the Volvo Group of Gabrielsson kept the company going cerning the development of the new Companies which was unique in Swed- with his untiring efforts and his Torslanda plant. On occasions when ish industry. For those of us today unshakeable belief in the future of a we, his colleagues, were doubtful about on whom the responsibility rests to Swedish automobile industry. He com- certain points concerning the respon- face the future with Volvo, we shall bined an outstanding talent for business sibilities to be assumed by the com- follow the lines he followed. It is up and economics with a dauntless belief pany, Assar Gabrielsson was always to us to see that the traditions and in the technical development of the full of confidence in the future and results of 35 years are carried onwards. products and expansion of the produc- was always very enthusiastic concern- We mourn the loss of our founder and tive resources. On many occasions he ing the greatest expansion in the history leader but his memory will remain made decisions which differed from the of Volvo. I know that it was his wish constantly with us as a symbol repres- more careful opinions of his colleagues to see this new factory in production enting the strength of our company but development showed that in practi- and that he hoped that his health would and its confidence in the future. In this cally all cases he had greater foresight last that long. Unfortunately this was spirit we know that we will be suc- concerning the future expansion of not to be the case but when the plant cessful. road traffic. I know few men who can is finally taken into use, the thoughts Assar Gabrielsson, we honour your look back on such achievements as and gratitude of all will go to the man memory and wish you eternal peace. Assar Gabrielsson and Dr. Gustaf Lar- who founded and created the possi- We are honoured to carry the proud son, who was his partner and friend bilities for this great factory. traditions of your Volvo and face the for many years. Strangely enough, As a person and a leader, Assar Gab- challenge of the future. Assar Gabrielsson considered that his rielsson was demanding but, at the creation of Volvo would show itself in same time, understanding and helpful.

FRIENDSHIP AND LIFE-LONG CO-OPERATION

he news about the death of Assay the possibilities of producing cars in made all things possible. He also got Gabrielsson has been received his native Sweden. As for me, ever SKF to believe in us. And so the car- Tand it was not unexpected. A since my years with the car industry producing company, AB Volvo, became fine man is gone; a man whose life's in England, I had been attuned to the a reality in the autumn of 1926. We work made him widely known and same idea and had begun to make established ourselves in the Gothen- admired. Without doubt, his deeds provisional calculations. burg district of . throughout the years have been in the Then came the Midsummer's Eve of Then came the arduous years of 1926 minds of many-deeds to spur the the year 1924. I happened to dash into to 1929. Working and worrying in the imagination on to a higher goal. a cafeteria just before making a trip hope that calculations and estimates Memories of Assay Gabrielsson crowd to the countryside and met Gabriel would be met. But they were not met my mind at this time and I would like in the cafe. "Why, Gustaf", he cried, and so, for one reason or another, it to recall some of these impressions. "I hear you've been busy with cars! was impossible to maintain the desired Gabrielsson and I knew each other We must meet and talk about it!". "Of production pace. But the estimates for 45 years as friends and colleagues- course", I replied in a hurry, "but not about profit margins were correct; so and towards the end, also as spectators at the moment. I'll see you later!". much so that profits were made at an of the progressive work which had Well, later it had to be-in fact, it even faster rate than anticipated. Per- been a source of joy to both of us. was in August of the same summer. spicacity, optimism based upon cold My thoughts first turn to the month That Swedish delicacy of ours, crayfish, reality, the ability to grasp the fleeting of May, in 1917, when we first worked tempted me to visit the Sturehof opportunity courageously, prudence together at the Swedish Ball Bearing Restaurant-and there sat Gabriel, when such a course was dictated, forth- Company, SKF, in . Gabriel alone, with a mountainous pile of rightness and trustworthiness-these was then a stately young man with a boiled, red crayfish before him. I sat were the basic qualities that Gabriel moustache. He was energetic and sales- down opposite him and we tackled the was equipped with as a leader. minded and, among his other duties, crayfish with gusto and a complete There were many who had their eyes it was his responsibility to handle the disregard for shop talk. In after years, fixed upon him, and he was "lent sales of the pulley belts and other it became a pleasant custom of ours to out" for other important work. But he transmission parts which was my job eat crayfish together annually, and always returned to the vocation which to design. He also met me on the towards the end of the 1940's other was really his. In my mind's eye, I like tennis court with a liveliness which senior members of Volvo also joined best to recall him sitting opposite me was still very much with him later on us in these pleasant festivities. at that enormous desk in our office on as a golfer. Plans were now pushed rapidly ahead. the upper floor of that old storehouse Our ways then parted; his led him Cost analyses for a passenger car were of Volvo's. That was, in all truth, a to and mine to Stockholm. Later, ready by September 1924; blue-prints room of parts: the draughtsmen's room, he told me that he first became fasci- in July 1925; and the ten experimental the accounting department, the cashier's nated over the possibilities of the auto- cars built in Stockholm were out on desk and the sales office-all in one! motive industry during his Paris so- the Swedish roads between June and But even in those early days, a clear journ. He saw the tremendous demand August, 1926. Gabriel was personally insight and a feeling of companionship for ball bearings needed by French obliged to make a great many financial were engendered there-really and cars, and he began to speculate over sacrifices but a firm belief in the future truly. Having discussions over that desk

3 One of the first on the assembly line. The year is 1927. and knowing fully well what we were ferent directions but our objective was expression of authority, an inner con- all doing saved us a lot of valuable always clear-and we had the happi- fidence and a glow of benevolence time. ness of progressing a long way during radiates from his features. A man who It was a great and glorious day when the years of our service together. Work could look back upon life with the we stood on our own feet, and quotations made heavy demands upon us but, in definite conviction that he had fully of Volvo shares were first listed at the return, reimbursed us with a great measured up to expectations. And he Stockholm Stock Exchange. The road feeling of satisfaction and an indisso- was a man who-with spiritual strength to expansion was open before us but luble bond of friendship. and self-command-then went onward clouded by uncertainty. The War that As I write, I contemplate before me to meet the fate of his affliction. was to come was also to force us into a portrait of Gabriel in his latter He will not be soon forgotten! detours and, at times, into wholly dif- years as the leader of Volvo. A calm A LOT HAS HAPPENED SINCE... t was not only a desire for adventure Swedish iron ore, Swedish pig-iron that led to the founding of Volvo. and Swedish steel had a large turn- All the essential requirements for a over on world markets and were sold A lot has happened since Volvo profitable Swedish automobile manu- in large quantities even in countries made its modest debut in 1927. Nobody facturing industry existed to a reason- with their own iron ore resources and was better acquainted with the able extent: steel production. All over the world astoundingly fast expansion o f Volvo Sweden was a well-developed in- people knew that Swedish steel was than Assar Gabrielsson. When he dustrial country. better than the steel from other count- retired from his position as managing Swedish rates of pay were low. ries. Experts discussed the "body" of director o f the company in 1956, Swedish steel had a world-wide rep- Swedish steel-a word used to describe Mr. Gabrielsson wrote a detailed article utation. the superiority shown by experience consisting o f an outstanding There was a demand for automobiles but impossible to explain. description o f the first thirty years built for Swedish roads. Swedish steel was good but Swedish of Volvo's existence. This is an At that time, Swedish industry had roads were bad, particularly when extract from the article. advanced pretty far in many fields. compared to American roads. Most of Names such as SKF, ASEA, Bofors, the cars sold in Sweden were built for Husgvarna and many others were straight concrete roads. They had soft wellknown both in Sweden and abroad. springing and were built for high-speed A complicated thing like an automobile driving. Neither of these qualities were requires many different manufacturing particularly suited for the twisting, pot- processes which, in their turn, must holed, dirt roads of Sweden. What was have a complete series of machines es- needed was an automobile with harder pecially built for the purpose. These suspension-an automobile that would machines were available in Sweden to hold the road. All Swedish people a large extent. Swedish engineering remember the "washboard" roads. Only skill was of a highly developed char- a really sturdy car would escape being acter. The Swedish worker had centu- shaken to bits on such roads. ries of tradition behind him. Sweden There were certainly enough essential had earned the reputation for manu- requirements for a Swedish automobile facturing high-quality products. industry. But there were problems to The second condition, low rates of be solved too. pay, was equally significant. At that The most important of these was to time in the United States, the workers build a Swedish automobile so eco- were being paid about the same in nomically that it would be able to dollars as Swedish workmen were compete with American automobiles. getting in kronor. And the Americans Mass production was, naturally, the were to be our first competitors since solution. But since the market would their products dominated the Swedish be limited to Sweden, at least during automobile market. the first few years, the rate of mass

5 production possible could hardly be on the same scale as in the United States. The question was whether the low Swedish rates of pay could compensate for the labour-saving automation and the lower tool costs per manufactured part which was possible in the larger series produced in the United States. We who founded Volvo thought that they would. After we personally had accepted the economical risks and had built a test series of ten automobiles more or less by hand, we managed to raise enough capital for a preliminary series of 1,000 automobiles. Our programme was fairly ambitious: 1,000 automobiles the first year, 4,000 the second year and 8,000 the third year. Our plans did not This photo here shows the actual prototype o f the Volvo car. It carried the specifi- go any further than this since we were cation ö 4 (meaning in Swedish an "Open, 4-cyl. car"). The man at the wheel is John convinced that having manufactured Andersson, who road-tested the car between Stockholm and Gothenburg. He found 8,000 automobiles, we would be running that everything functioned well, apparently, according to comments made upon arrival with a profit. at destination. Andersson subsequently became the foreman at the Volvo factory, In reality, however, things did not responsible for road tests and final checking. quite work out the way we had planned. We got manufacture started but sales during the first year-that was 1927 did not exceed 300 automobiles, the second year 900, the third year 1,400 and so on. Without in any way detracting from the sales problems during the first years, it is true to say that manufac- turing problems were the greatest. These were divided into two groups: 1. How to reduce the costs of the com- ponent parts manufactured by our sub-contractors so that our automo- biles were really competitive. 2. How to plan, in Sweden, the pro- duction of special automobile units for which we had none of the spe- cialized machines required and no experience and which in many cases demanded large-scale production to make the work pay. Expansion - and the Swedish climate - brought about a saloon car: a model from 1928. Work on the second of these problems soon came to our help as far as solving the first problem was concerned. We The struggle to reduce production manufacturers and our own crankshaft were forced to a certain extent to costs of the parts made by our sub- sub-contractor, Bofors. The Americans obtain certain specific technical auto- contractors took many forms. In many were not able to undertake manufac- mobile units from abroad-I am think- cases, the risks involved were carefully ture of a crankshaft that was so com- ing of electrical equipment, various weighed up against the advantages. I plicated. The price stated by Bofors instruments, carburetors etc. In this shall mention an example. In 1933 we was very high if it was to be based on way we made contacts abroad which were ready with the design of an the quantity of one thousand engines gradually developed and gave us possi- overhead valve engine for use in needed for the following year. We bilities to set up foreign competition heavy trucks. The crankshaft in this were forced to take the risk and order against our Swedish sub-contractors. engine was world news in automotive 10,000 crankshafts with delivery over A significant phase in our develop- construction as it had integral counter- a certain period of time on the assump- ment was when we persuaded our weights, i.e. the complete crankshaft tion that this engine would be manu- Swedish sub-contractors to send tech- was forged in one unit while the motor factured for some year and even if the nicians to foreign countries, primarily industry, even in the United States, engine design was to be modernized in the United States, where they could had used separate counterweights which any other respects, the crankshaft must learn the most modern manufacturing were attached to the cranks. We con- remain unchanged. At this point I technique and use it in Sweden. tacted several American crankshaft should like to add that this engine

6 remained practically unchanged with In 1939 we had developed so much branches, a continual modernization, exactly the same crankshaft for such that our manufacturing programme the maintenance of a never-ending a long time that it was in production consisted of 9,000 units of which 5,000 progress in this field, a process of for some years after World War II. were trucks and buses and 4,000 auto- continually keeping abreast where We started in a period of trade de- mobiles. At that time about 35 % of the manufacturing methods and styling are pression and found ourselves in the trucks and buses we manufactured concerned. In spite of this, or perhaps rather strange situation that while other were exported but only a negligible just because of it, the work is intensely industries and tradesman waited impa- number of automobiles. It was still stimulating. When we started and tiently for a period of prosperity, we mainly the possibility of manufacturing reckoned out that we should manufac- were worried about the period of pros- in Sweden that limited our turn-over ture 8,000 vehicles the third year to perity. Among those who lacked faith since during the pre-war years we only ensure a profit-making organization, when we started Volvo, there were had sporadic difficulties concerning the we showed ourselves to be too naive many who thought that it would be sale of certain models. About 15 % , of as far as the rate of development was quite possible to buy cheaply from the material used in our vehicles was concerned but unnecessarily pessimistic Swedish sub-contractors as long as foreign, this figure varying slightly from concerning the volume required in there was a trade depression and the model to model. order to show a profit. In spite of this, various industries had little to do but Our capital had increased to 18.2 for my own part, I have always con- when prosperity returned, they would million kronor. sidered through the years that the no longer have any interest in Volvo I shall never forget the success of really important thing was to strive and the small margin of profit derived our small automobile, the PV 444, both from work for Volvo. in the big exhibition we arranged in Things did not work out that way at Stockholm in September 1944 and later all. When prosperity gradually re- as people in general and experts in turned, the demand for our products particular had an opportunity to see increased. We could plan larger pro- this automobile and-even more im- duction series which meant lower pro- portant-to drive it. duction costs for the manufacturers and I cannot deny that luck played a thus prevent any price increase in certain part in the design and construc- excess of the average increase for all tion of this automobile but it is not the components. altogether surprising that this youthful Many people who showed friendly team of engineers should have luck on interest in Volvo during the first few their side when they worked as they years seemed to have the idea that the did. various large sub-contractors should Several new constructional principles be share-holders in the company. In were incorporated in the design of this other words, Volvo would be a collec- car: short-stroke engine, integral con- tive concern of various Swedish indus- struction body, independent suspension, trial interests who saw in Volvo an self-adjusting brakes, "direct steering" addition to, and an equalizing factor in decreased ratio in the steering box, But there was a certain sparkle and ele- their own production. I am glad now advanced streamline design and so on. gance about the PV 651, the first six-cyl- that I did not accept that suggestion. Both our own opinion and the opin- inder car. It would have eliminated competition, ions of others made us exceptionally the possibility for various manufac- optimistic but we never believed that turers in the same branch to compete by the time 1956 arrived we should for increased productive volume while with each other-and foreign com- have built a total of 125,000 of this increased profits, or rather immediate petitors-for the most favourable tender model alone which had certainly been profits, are of secondary importance. and it would have made Volvo the modified and modernized in many ways It seemed to me that through increased pawn in a game of interests which did but was still basically the same as in volume, the profit side would gradually not always concern Volvo. My action 1944. The demand for this car today is be looked after. That is why when in this case was a practical application such that we hope to manufacture at various occasions have risen causing of the principle of national economy least another 125,000. We never dreamed conflict between a desire for profit and which I learned during my Commercial that we should present this model in chances for increased production vol- College days from Prof. Heckscher. the United States in 1956 where, unless ume, my decision has usually been to This principle was that co-operative all the signs are completely wrong, it the advantage of production volume. consumption could be a very good is a success. The more vehicles we had on the roads thing but co-operative production was During my life as a businessman, I the easier they were to sell or, as one completely hopeless. have been active in many different of our overseas agents expressed it: As the years went by and our vehicles fields: eggs, ball bearings, matches and One customer won is ten customers got a good reputation, it became easier automobiles, to mention the most im- won, one customer lost is ten lost. One to get hold of dealers in Sweden. Grad- portant. The automobile business has absolutely clear subsidiary speculation ually the large and influential dealers been the most difficult (with the pos- in this argument is spare parts sales switched to Volvo but it is also a sible exception of the egg business-but which were reckoned to follow in the pleasure to note that many who had I was young then and inexperienced). track of vehicle sales and which, grad- started without knowing much about Work with automobiles demands, to ually, would become the permanent part automobiles at all are still with us. a greater extent than most other of the business transacted which would

7 Volvo's 30th Jubilee, in the year 1956, took the form of a veritable "gathering of the clans!" for Volvo's employees. At Gothen- burg's beautiful amusement park, Liseberg, the many thousands of Volvo workers listen to an impressive speech (among other items on the programme) given by their retiring leader, Assar Gabrielsson.

8 Three good friends! It looks as if Erik Magnus (left) had taken over the role o f demonstrator for the Swedish prince and Volvo's managing director. This photo is from the Stockholm Exhibition o f 1944.

H.M. the King of Sweden paid a visit to Volvo in 1958 and he took a lively interest 2n the different manufacturing steps. Gab- rielsson explains a detail here, assisted by riveter Arne Andersson. On the photo are Per Nyström (Governor o f Gothenburg and Bohus Province), Gustaf Larson (one o f the founders o f AB Volvo) and Svante Simonsson (vice president o f AB Volvo). be maintained comparatively unchanged even in a trade depression. To use a particular similarity one can say that the automobile manufacturer and the dealer in the spare parts shop have a small possibility to obtain tax-free profit adjustment. They can sell auto- mobiles for the lowest possible profit in order to attain maximum production volume and make the profit instead later in the sales of spare parts. Another side of the picture, the im- portance of which I only realized grad- ually, was the service side. As a matter of fact in the motor vehicle branch in general there has been a slight varia- tion of definition: Earlier it was vehi- cles that were sold, today it is transport The PV 36, the first streamlined car made in Sweden. It was named the "Carrioca" units. This is true, naturally, primarily from the point of view of the vehicle manufacture but also, as far as trucks and buses are concerned, from that of the customer. For me, this variation became reality during the war years. Foreign makes had a particularly hard time during these years to supply the necessary spare parts for their models in Sweden while Volvo owners could run their vehicles as usual without having to wait a long time for spares. This concerns automobiles perhaps to a greater degree than anything else. For this reason, during the war years greater stress was placed in Volvo's efforts to extend its service so that the performance of the vehicles during their whole lifetime would satisfy the customers. In the first place this meant Producer gas! A whiff of the grim war years is reminiscent in that expression. Volvo that our dealers were persuaded to was the first to be in production with that substitute, but necessary, generating unit. build practical, modern workshops with And what was more natural but that the first o f these generators should be mounted on a capacity large enough to ensure that the Chief's own car! the customers would never have to wait to have their vehicles serviced. A French industrialist put it this way: "The price of a commodity is a one-time worry as is also delay in delivery but the quality of the com- modity in question concerns me all the time". We, ourselves, started to pay more attention to the production of service literature, service manuals, instruction books and so on as well as the produc- tion of special tools to simplify repair work aiming towards both lower repair costs and shorter repair time. Finally, when designing new models, we placed more in the foreground than earlier the question of accessibility, easy replacement and simplified repair procedure on the whole. The PV 444 guarantee, which is so The PV 444, model A, at the Stockholm Exhibition. Due to a shortage of steel plate, this well-known in Sweden and was intro- car was not put into production until some years later. duced a few years ago, covers collision lo Two items of news - the Volvo 121/122 S and the Volvo petrol-powered truck - being demonstrated to salesmen, on August 3rd 1956.

damage and other forms of damage. of things and received detailed answers. This guarantee is the end product of This frankness was not limited to us Assay Gabrielsson Fund for clinical our service efforts. As far as this auto- foreigners but seemed to apply just as research mobile-which is mass-produced to a much internally in the United States high degree-is concerned, we have as a whole. I found this frankness ex- Before his death Assay Gabrielsson managed to reduce repair costs to such tremely appealing. I had arranged made an express request that the fu- a low level that we were able to relieve things at Volvo so that we all sat in neral should take place quietly. His the customer of these costs within one large office where each one of us family therefore respected this. For certain limits and, thanks to the kee- could follow everything that happened this reason nobody outside the family ner competition we could offer, we and everything that was said and I was present at the funeral, the date of sold so many more automobiles that made a practice of openly discussing which will not be published. The family the profit from these could balance and Volvo business with anyone who was also expressed a wish that no wreaths even exceed the total value of repair interested. Later I made a rule of or flowers should be sent to the funeral. costs involved through the guarantee. giving as detailed information as pos- Anyone wishing to honour Assay Gab- Finally a reflection concerning the sible concerning the activities of the rielsson's memory can do so by send- general feeling in the company. When company in the Annual Company Re- ing a contribution to: we at Volvo, at the beginning of our port and attempted to train Volvo em- "The Assay Gabrielsson Fund for activities, began to have contact with ployees to have the same point of view. clinical research particularly as re- the automobile industries in the United I am convinced that the frankness gards cancer". States from a purchasing and study and sincerity of Americans has been Such contributions should be sent to: point of view, we were surprised by an important factor in the rapid prog- Dr Arvid Hultborn, their unreserved attitude and their ress maintained in the United States Lillkullegatan 21, readiness to impart information con- and I believe that co-operation and Göteborg Sweden cerning their work, both from designing relationship between individuals would and manufacturing viewpoints. We be better, more productive and more Dr Hultborn will notify the names of were allowed to see all we wanted to pleasant if this mentality became more donors to Assay Gabrielssons family. see. We asked question about all sorts general.

11 Lundström, the watchman (and one o f the faithful old workers from the very begin- ning), used to take care of the persons who became sick. He also had the Company's first-aid dispensary in his porter's lodge. And he could tell tall stories! It is prob- ably one of these that Gabrielsson is lis- tening to here!

This sociable snapshot was taken on Gab- rielsson's 65th birthday. The group is a deputation from the Foremen's Club at Volvo. And the person making the presen- tation was the chairman o f the Club at that time, Gunnar Thulin.

12 Assay Gabrielsson had time over to in- dulge in both hobbies and outdoor inter- ests. Volvo's special form o f the decathlon gave him an opportunity of demonstrating a skill that was good enough for the dif- ferent sections o f this event, like "varpa" (a form of stone-quoit throwing-contest that is typically Swedish). Shooting per- haps, was the event in which he best excelled. r

Incoming orders and planning o f sales strategy about the newly designed PV 444, in the year 1944, were naturally matters that were very close to the hearts of those two old friends, Gustaf Larson and Assay Gabrielsson. Being studied here in this photo are figures and forecasts on a plan- ning-board.

13 A unique photo - Assar Gabrielsson clearing the ice from his fishing-rod! TO MY FRIEND

14 n 1930, I was elected a member of And then, he also had his faults. He Volvo board of directors and thus could be quite stubborn. This could be met Assar Gabrielsson for the first both an asset and a weakness. The time. blinker-light device on the roof of For me, this was a most fortunate Volvo cars, was characteristic of his event-and for two good reasons! First- stubbornness but he conceded the du- ly, I made a good friend for life and bious advantage of that device in the secondly, I had the opportunity of end. following the development of a modest It was a pleasure to participate at a project into a really great industrial board meeting when Gabrielsson took organization. the chair. Clearness and conciseness, Gabrielsson was no ordinary person. and the disposition of appropriations. His colourful personality reflected his -mostly huge sums-typified his mov- many qualities. es. If he was voted down in certain He was full of ideas; some brilliant proposals, he accepted with good grace. and some, perhaps, less so. His brain Perhaps in his innermost self, he be- was always active unless he was asleep lieved that his colleagues on the board -he then slept the sleep of a new- were right and-who knows?-if the born babe! same proposal was brought up again at He was also the most unmusical a subsequent meeting, he would carry person I ever met and this is quite a the voting, perhaps, at that time. sweeping statement. But he could, at Gabrielsson was entrusted with many least, come out with two little ditties, responsibilities over and above his du- of which one was typical of his attitude ties with the Volvo Group, but Volvo towards life: "Enjoy yourself, for it's was always closest to his heart. later than you think!". A man who bore such a heavy burden. I heard his other song for the first of work, and who could still work. time in 1941 when we motored to a intensively at that, of course, required little Swedish river called Em, and relaxation. And that he got from his, where I had intended to introduce him family and his host of friends. He also to the noble sport of salmon fishing. travelled far and wide; and he fished,, He was a most enthusiastic and highly played cards and read omnivorously. competent angler. His speciality was His appetite for reading often led to fishing for pike with trout-flies. And discussions and, occasionally, resulted in this art, as far as I knew, he was in the giving of informal lectures at without peer. But, of course, he also societies and clubs. had his unlucky days when he came Another point about him is quite home without a catch. clear. No one needed to have a dull Well, when we passed the River Em moment with Gabrielsson. You could for the first time, in the neighbourhood always enjoy a chat, or a quiet moment of Vetlanda, we took off our hats and or two in his company. Once in a while he then sang a lusty song the words he could jestingly remark: "Are you

a of which modesty prevents me from never silent?". And in self-defence, I repeating here. But according to reli- would cheerfully retort: "Only when able report, that song originated from I'm not snoring in my sleep!". the youthful days of his military service. Gabrielsson was a forthright man I heard him sing the words of that whom one could trust implicitly. Now song about four times a year during that he is no longer with us, it is all the years we passed that fishing possible to review his accomplishments spot. But I must stress that I could and state that his life's work-Volvo- never recall the melody for it was was a highly meritorious and fruitful GABRIEL always a new one-if, in fact, the word one. melody could be applied at all! There were many who enjoyed his While on the subject of music, I can friendship and shared in his labours emphatically say that the tenor of his I, personally, am deeply grateful for life was definitely much more harmo- having participated in the many years nious. of active, daily work which Assar Gab- Of course, Gabrielsson, like the rest rielsson inspired in all of us-and,, of us, had his trials and tribulations- without doubt, the overwhelming ma- but he never displayed his sorrows. jority who came in contact, or worked On the other hand, he liberally shared with him, are of the same opinion. his happy moments with all. Erik L. Magnus

1 Assay Gabrielsson used to relate occa- sionally his tale about some savages and their bow. That story, in spite o f its sim- plicity, was to exemplify the value and need for initiative and organization. The climax of that yard was typical of Gab- rielsson and it gave food for thought! Volvo's office staff obviously kept that in mind and their gift to Gabrielsson on his 65th birthday was appropriately to the point!

his is a tale about three days in the lives of some savages. In the T beginning, ten savages went out into the woods. They were naked and without weapons or tools. And they existed upon the fruit and game they could forage. Their production for the whole day consisted solely of obtaining food and they ate up this food on the same day. Their production was also their consumption. And when the first day was over, these poor savages were just as naked and as badly off as they were when the day began. So one of them then went before their chief and said, "I have an idea. I will make a bow, and that is a wonder- fully fine thing which can be useful to all of us". "Yes, why not?", the others re- parts, let me have a tenth share. You the woods again. They did not go alone, sponded. will all have to eat a little less for I these ten men. They had with them the "But it is not so easy", continued the must eat too, when I'm making the Bow! They carried this bow-their savage who had the idea. "When we bow". capital and productive tool-with them. all go into the woods, I get all the food "That was the stupidest thing we And from that moment onwards, they I need for a day. But if I'm to spend ever heard of!", the others cried. "Are could raise their living standard. For my time making a bow, then I can't we to reduce our level of existence with the bow, they could now bring go into the woods. So the rest of you just so that you may make a bow? down birds which they formerly could must get more food to take care of me Reducing our standard of living, pooh!, not reach. too! I must have just as much as the that's not to be thought of at all:". That was the first step the savages rest of you". How this matter of providing food took on the long road upwards and While the other savages were think- for the savage with the idea is not told onwards to a higher standard of living. ing this over, he continued, "But this in this story. Whether he made the And what happened to the inventor's matter can also be arranged in another bow unaided or whether he got help, bow? Perhaps the chief may have way. You nine produce the same quan- we'll never know. But when the second thoughtfully proclaimed that, in the in- tity of food as you usually do, but day was over, he had his bow. And on terests of the community, he should instead of dividing the lot into nine the third day they all went out into take care of the bow himself!

ssar Gabrielsson appeared in matters, therefore, provided excellent who, as was generally known, was also news items, prominently head- material for the members of the press. a man of striking personality. Among A lined, in the Swedish press to For example, like the time when the verbal thrusts exchanged, Gabriels- an extent equalled by few others. He transport by rail predominated in son stated in a Gothenburg daily paper never hesitated to express his personal Sweden. Assay Gabrielsson, as the head that "the Indian Summer of the Swed- viewpoints on any subject and was of the Volvo Company, had reason to ish State Railways would not last for- ready to exchange verbal blows, if start a lively verbal controversy that ever-trucks and cars are, and will necessary, with opponents and others attracted attention far and wide. That continue to be, the most important who did not share his opinions. His argument was with the head of the medium of transport!". decisions and utterances on different Swedish State Railways, Mr. Granholm, Gabrielsson had been to Russia and t 16 studied business there. It was probable that that visit was the one which prompted the Volvo salesmen in Swe- den to give Gabrielsson a 50th birthday present, in 1941, which was both ex- pensive and unusual. That present took the form of a replica of a magnificent piece of silverware made in the early part of the 17th Century: a silver statue showing Hercules bearing the Earth upon his shoulders. The original, which is now in the Swedish royal collection, was presented to the Swedish king, Gustavus Adolphus, by the burghers of Nuremburg. An earlier replica had also been made to the order of a Swedish king in Victorian times, Oscar II, and presented to the then ruling Russian Czar. The Swedish home market was con- sidered inadequate for development and expansion, so frequent trips abroad were made by Gabrielsson. He made promising foreign contacts which sub- sequently proved to be highly fruitful. But capital was required to enter in- ternational markets and Assar Gabriels- son cast a speculative eye upon the pension funds of his employees. The Swedish press made a 4-column head- line story out of that. And his news- paper-reading employees were highly shocked over this original method of Gabrielsson's to obtain the capital he wanted! However, that problem of additional capital was solved in a more conventional manner to the benefit, it is hoped, of all parties concerned. There were also times when there were sharp differences of opinion be- tween the Volvo factory departments and the head office. And the news- papers had a field day by chiming in with: "Volvo Strike a Communist Act, states Gabrielsson". It should be men- tioned that 1952 was a turbulent year. That headline, and Gabrielsson's state- ment to the press, is on record in the pages of Gothenburg's liberal daily, the "Göteborgs Handels- och Sjöfarts- Tidning". The opposition press was, of course, not slow in countering with: "Volvo attacked by Employers of Labour!". That headlines appeared in an editorial in the left wing "Arbetar- tidningen" at that time. Assar Gabrielsson and Volvo-these became two great names synonymous with strength and industrial enterprise. "A Man among Men!" was how a journal described Assar Gabrielsson in some connection or other at one time. And his friends and fellow-workers in Volvo -and around the world-endorse the accuracy of that description! On the eve of April 14, 1927, the first mass- produced Volvo car rolled off the assembly line in the leased premises of a ball bearing factory, the "Nordiska Kullagerfabriken", in Hisingen (a district of Gothenburg).

In the year 1941, when Assar Gabrielsson was 50 years old, the 50,000th Volvo car was produced. It had taken 10 years to produce the first 25,000 cars but only four years for the other 25,000.

When Assar Gabrielsson, in 1956, retired from his post as Volvo's managing director to become chairman of the Volvo board, car production had tripled since 1950. This meant an increase from 18,747 units to 50,682.

Because of his manifold talents and wide experience, Assar Gabrielsson was chosen on numerous occasions for various assignments outside the actual activities of the Volvo Group. Among such assignments, he had participated on several occasions in trade-agreement negotiations for the Swedish Government with foreign powers. One such occasion was in negotiations with the U.S.S.R., and he made five visits to that country between 1923 and 1931. Other negotiations in which he took part were with the U.S.A. and Spain. In ASSAR GABRIELSSON was born on August 13, 1929, he was appointed a member of the board of 1891, in Korsberga, in the province of Skaraborg, the Swedish Match Company, "Svenska Sweden. After matriculating in Stockholm Tändsticks AB". In that capacity, he acted as an in 1909, he entered the university "Handelshög- administrator. During the years, 1937 to 1939, skolan i Stockholm" (the Stockholm Graduate he was a member of the Swedish Government's School of Business Administration), and where he so-called Commission of Economic Defence. In graduated with a B.Sc. (Eton.) degree in 1911. 1947, Gabrielsson was the world-president of the Gabrielsson was then employed in 1912 as a Congress of Industrial Organizations; a post which stenographer in the chancellery of the Swedish he retained up to 1951. In 1957, he was appointed Parliament (Second Chamber). He stayed there chairman of the board of the Swedish shipbuilding for four years. In 1916, he joined the Swedish Ball concern, AB Götaverken. And in 1959, he was Bearing Company, SKF, in Gothenburg. made an honorary Doctor of Economics by his During the year 1920 to 1922, he was the old university, "Handelshögskolan i Stockholm". managing director of the SKF company in Paris, the "Société Anonyme de Roulements à Gabrielsson was awarded the medal of the Billes". In 1923, before Gabrielsson was 35 years "Ingenjörsvetenskapsakademiens de Laval" (The old, he was appointed the sales director for the de Laval Academy of Engineering Science) in entire SKF group of companies. 1929; and the Clarence von Rosen medal in 1942. In 1956, he became a member of "Vetenskaps- och In 1924, Assar Gabrielsson initiated a collaboration Vitterhetssamhället i Göteborg" (The Gothenburg with an engineer, Gustaf Larson. Mr. Larson Society of Science and Literature) ; and in 1960, was at that time the technical director of he was elected an honorary member of the AB Galco; and he had earlier in his career also Swedish "MTM-föreningen" (Association of worked in SKF as well as in the British Methods, Time and Motion Studies). automotive industry. That collaboration, which was to continue throughout their lives, resulted in Assar Gabrielsson passed away in Gothenburg their joint founding of AB Volvo in 1926. on May 28th 1962.

Ratten AB Volvo Box 382 Gothenburg Sweden Responsible Editor Hans Blenner Editor Erik Lundberg

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